Average Canadians pay 42.5 per cent of their income in taxes: report

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It's a lot, but Canadians incomes still managed to grow faster than their tax bills.

Canadians pay a whopping 42.5 per cent of their income in taxes, according to a new report by the Fraser Institute.

An average family with an income of about $83,000 paid roughly $35,000 in taxes last year, the Vancouver, B.C.-based think-tank calculated. That overall tax bill accounts for federal, provincial and local taxes, including income, payroll, sales and property taxes.

By comparison, a typical Canadian household used only 37 per cent of its income on basic necessities, according to the report. Spending on housing (including rent and mortgage payments), food and clothing amounted to $31,000 for the typical family.

“Many Canadians may think housing is their biggest household expense, but in fact, the average Canadian family spent more on taxes last year than on life’s basic necessities — including housing,” said Charles Lammam, director of fiscal studies at the Fraser Institute.

Canadians’ tax bill has risen by over 2,000 per cent since 1961, much faster than the price of many consumer products.

The Consumer Price Index (which measures the average price that consumers pay for food, shelter, clothing, transportation, health and personal care, education, and other items) rose by only 718 per cent over the period, the report said.